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E-3<br />

significant and sustained<br />

investments in educatiOn<br />

The support and resources that a system provides to schools play<br />

a critical role in how schools perform as they enable teachers and<br />

principals to focus on their core business of delivering effective<br />

teaching and learning. A country’s investment in its education system<br />

is therefore an important measure of its commitment.<br />

The Malaysian Government has sustained high levels of investment in<br />

education over the 55 years since independence. As early as 1980, the<br />

Malaysian federal government’s spending on primary and secondary<br />

education, as a percentage of Gross Domestic Product (GDP), was<br />

the highest in East Asia. In 2011, the amount spent, at 3.8% of GDP<br />

or 16% of total government spending, was not only higher than the<br />

OECD average of 3.4% of GDP and 8.7% of total public spending<br />

respectively, but also at par with or more than top-performing systems<br />

like Singapore, Japan, and South Korea (Exhibit 1). In 2012, with an<br />

education budget of RM37 billion, the Government has continued<br />

to devote the largest proportion of its budget, 16% to the Ministry.<br />

This demonstrates the very real commitment the Government has to<br />

education as a national priority.<br />

EXHIBIT 1<br />

Basic education expenditure<br />

Percent (2008)<br />

1 as a percentage of total government expenditure for Malaysia<br />

and peers2 18<br />

16<br />

Malaysia3 Thailand3 14<br />

Mexico<br />

12<br />

Chile<br />

12<br />

Hong<br />

Kong 3<br />

SOURCE: Ministry of Education Malaysia; OECD – Education at a Glance 2011; Singstat; Ministry of Finance Thailand; Ministry<br />

of Finance Indonesia; Education Bureau of Hong Kong.<br />

11<br />

Korea<br />

11<br />

9<br />

Indonesia3 Singapore3 7<br />

Japan<br />

OECD<br />

average<br />

8.7%<br />

1 Includes operating expenditure and capital/development expenditure for basic education (primary and secondary)<br />

2 Peers based on the following categorisation: Asian Tigers (Hong Kong, Singapore, S. Korea, Japan); SEA neighbours (Indonesia,<br />

Thailand Singapore), and comparable GDP per capita (Mexico and Chile)<br />

3 Data for 2010<br />

Note: Data from 2008 or 2010 depending on latest available data<br />

dramatic prOgress On<br />

imprOving access tO<br />

educatiOn<br />

The education system has made tremendous progress since 1957. At<br />

the time of Independence, over half the population had no formal<br />

schooling, while only 6% of Malaysian children had been educated to<br />

secondary level, and a paltry 1% to the post-secondary level. Five and<br />

a half decades later, access to education has been transformed beyond<br />

recognition.<br />

In 2011, Malaysia had achieved near universal enrolment at the<br />

primary level at 94%, and the percentage of students who dropped out<br />

of primary school had been significantly reduced (from 3% in 1989 to<br />

just 0.2% in 2011). Enrolment rates at the lower secondary level (Form<br />

1 to 3) had risen to 87%. The greatest improvement was undoubtedly at<br />

upper secondary level (Form 4 to 5), where enrolment rates had almost<br />

doubled, from 45% in the 1980s, to 78% in 2011. These enrolment rates<br />

are even higher once enrolment in private schools is factored in: 96%<br />

at primary, 91% at lower secondary, and 82% at upper secondary level.<br />

These rates are higher than most developing countries, although they<br />

are still lower than that of high-performing education systems like<br />

Singapore and South Korea. In parallel, there has been rapid expansion<br />

in preschool education. Around 77% of students are now enrolled in<br />

some form of preschool education (either public or private), and the<br />

target is for universal enrolment through the Education National Key<br />

Results Area (NKRA) in the GTP.<br />

The significant improvement in access to education is echoed by a<br />

similar improvement in attainment. Youth literacy has risen from 88%<br />

in 1980 to near-universal literacy of 99% today, while adult literacy has<br />

increased even more dramatically, from less than 70% to over 92% in<br />

the same time frame. Further, the proportion of the adult population<br />

(aged 15+) with no schooling has declined, from 60% in 1950 to less<br />

than 10% in 2010, while the proportion (aged 15+) that has completed<br />

secondary education has risen from around 7% in 1950 to almost 75%<br />

over the same time period (Exhibit 2). These are achievements of<br />

which Malaysia can be proud.<br />

EXHIBIT 2<br />

Highest educational attainment of population aged 15 and above (1950-2010)<br />

Percent of population<br />

1<br />

6<br />

33<br />

60<br />

1950<br />

1<br />

7<br />

35<br />

56<br />

1955<br />

2<br />

10<br />

38<br />

50<br />

1960<br />

2<br />

13<br />

41<br />

44<br />

1965<br />

2<br />

19<br />

43<br />

37<br />

1970<br />

SOURCE: Barro and Lee, 2010 (Eurostat, UN)<br />

2<br />

24<br />

41<br />

32<br />

1975<br />

Tertiary<br />

3<br />

31<br />

38<br />

28<br />

1980<br />

6 8 9 10 13 15<br />

39 39<br />

33<br />

21<br />

1985<br />

Secondary<br />

39<br />

15<br />

1990<br />

51<br />

26<br />

13<br />

1995<br />

Primary<br />

56<br />

22<br />

12<br />

2000<br />

No Schooling<br />

59<br />

18<br />

10<br />

2005<br />

61<br />

15<br />

9<br />

2010

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